Non-compete fees to form part of price offered to public shareholders if payment to promoters not justified

SECURITIES APPELLATE TRIBUNAL, MUMBAI IP holding Asia Singapore Pte. Ltd. versus Securities & Exchange Board of India APPEAL NO. 130 OF 2011 SEPTEMBER 12, 2012 ORDER P.K. Malhotra, Member & Presiding Officer (Offg.) The issue that arises for our consideration in this appeal is whether the appellants are liable to pay to the public shareholders the non-compete fee that has been agreed to be paid to the outgoing promoters of the company being taken over. The facts of the case, which are not in dispute, may first be noticed. 2. Appellant no.1 is a company incorporated und...